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Analyzing how Dogecoin’s next move hinges on THIS price level
Dogecoin (DOGE) has been reeling under immense pressure lately, with its recent 50% decline from the Q4 peak leaving a trail of uncertainty in its wake. As it stands at present, DOGE is critically poised at the $0.20 threshold, and whether or not it can hold onto this level will have significant implications for its short-term trajectory.
According to the data, the cryptocurrency has been experiencing a drastic slowdown in new address creation, with the metric plummeting from 1.29 million in November to a paltry 31K at press time – an astonishing 97% decline. This stark contraction is primarily attributed to a significant drop-off in fresh inflows and mass unloading by HODLers.
The bearish trend is set to continue as long as this demand-supply imbalance persists, casting serious doubts over the cryptocurrency’s ability to reclaim its $0.48 post-election peak or even muster up momentum towards the elusive $1 target.
Currently, DOGE has already relinquished 18% of its weekly gains and liquidated a substantial $7.64 million in long positions within the past day alone, with network data revealing that DOGE holdings in the 1M-10M token wallets have slipped to a six-month low – shedding an alarming 460 million coins.
Furthermore, a major whale wallet situated within the 100M-1B range has offloaded an astonishing 6 billion DOGE since the post-election rally, exacerbating the relentless selling pressure engulfing the market.
In the near term, any potential rebound to $0.25 – its previous resistance point – remains uncertain given the prevailing unfavorable macro conditions and woeful accumulation statistics. It is crucial for DOGE bulls to step up their game, as a drop in Bitcoin (BTC) below its critical $84K support could render DOGE’s defense of the $0.20 threshold highly challenging.
In conclusion, whether Dogecoin can successfully hurdle this crucial price level will ultimately dictate the direction it takes moving forward – making it absolutely imperative for investors to remain vigilant and monitor market developments closely.
Source: https://ambcrypto.com/analyzing-how-dogecoins-next-move-hinges-on-holding-this-price-level/
